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U.S. Slaps Russia With Sanctions Over Ukraine; Kerry Meets With Russian Foreign Minister; Crimeans To Vote On Joining Russia; Reuters: Putin Not On U.S. Sanctions List; Graham Slams Obama On Foreign Policy

Aired March 06, 2014 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ANDERSON COOPER, CNN ANCHOR: I want to welcome our viewers in the United States and around the world watching our CNN International. I'm Anderson Cooper live in Kiev from Independence Square.

We begin this morning with breaking news. Washington slaps the first sanctions against those to blame for the crisis in Ukraine. And the Obama administration says there could -- could be more punishment to come. I want to go straight to the White House and our Michelle Kosinski is standing by.

So Michelle, an important distinction. These news sanctions target individuals, not Russia as a nation correct?

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Yes. And that's really a first place to start. I mean the, U.S. Government from the start has said that this was going to be progressive and we saw them a few days decline to take part in meetings leading up to the G8 then remove themselves from trade talks with Russia and even in discussing possible sanctions they always said, you know, well, first you target individuals, asset freezes and visa bans.

That is exactly what the president did this morning in signing this executive order. And they specified in the background briefing, senior administration officials said in terms of asset freezes, they don't have anybody really designated at this point. That's something they're going to be looking at.

But on the visa bands and even relocation of existing visas, there are already people identified by the U.S. government, on this list as they put it. We don't know how many are on it. That's already in process. In fact, people who have visas in this country are being notified as we speak that their visas will be revoked.

They didn't really specify what roles these people played. We know in the executive order, it spells out really four categories that these targeted people would fall under. People who are deemed by the U.S. government to undermine the stability of Ukraine, undermine the Democratic process, misappropriating of state funds or asserting government authority there without the authorization of the government in Ukraine -- Anderson.

COOPER: It's interesting, Michelle because this is something the United States has done in the past against individual Russians based though on human rights violations. This is obviously the first time they're now expanding it solely based on the situation in Ukraine.

KOSINSKI: Yes, exactly. We saw that very recently with the Magnitsky Act targeting certain people. That was related to a court case where the person accused in Russia had died in jail. So Congress decided to enact this law. Right away, we saw Russia retaliate if you want to call it that. They banned American adoptions of Russian children.

Something that really stunned people in America because I think a lot of Americans don't necessarily pay attention to diplomatic processes or things imposed on other countries on a very technical level. When it affects people on the ground like you can no longer adopt a Russian child, that's when people say, wow, what is going on in our relations with that country?

In fact, it was asked today of these senior administration officials, well, didn't Russia already say that if sanctions were imposed that they would then retaliate, that they would say, you know, real seize the assets of American companies in Russia?

That's something that the Russian parliament was going to do. Well, the officials responded by saying that doesn't concern us here. We just felt that we needed to act quickly and there should be costs and consequences enumerated now. There wasn't anything that really touched this off this morning.

Some were asking whether this had to do with the referendum that's being brought up by the Crimean parliament. Officials said no, it has nothing to do with the referendum or any other specific event. They just wanted to do this now as a flexible and a powerful tool they called it in case things escalate further. They said they have grave concerns that they will -- Anderson.

COOPER: All right, Michelle Kosinski, appreciate the update this morning. Thanks very much. Happening now in Washington, lawmakers in both the House and the Senate are considering their own sets of sanctions. Sanctions against Russia, some like those unveiled this morning targeting individuals. Others like one unveiled in the Senate aimed to punish and isolate Russia itself.

We're monitoring debates. We'll bring you any new developments as warranted. Stick around for that. The U.S. is still trying to work diplomatic channels obviously for a solution to the standoff in Ukraine.

Secretary of State John Kerry met with Russia's Foreign Minister Sergei Lavrov just a short time ago on the sidelines of a conference in Rome. They had also met yesterday in Paris. CNN's Elise Labott is traveling with Secretary Kerry. Elise, anything come of that meeting?

ELISE LABOTT, CNN FOREIGN AFFAIRS REPORTER: Anderson, they wrapped up just shortly, about an hour's worth of talks. No agreement. The Russian foreign minister left the talks according the Russian wire service, Interfax, saying that there was no agreement. What they're really looking to do is get some kind of diplomatic process going. As you're saying get some kind of coordination group where you would have Russia and Ukraine in the same room along with the United States, Britain, France, and Germany, all trying to de-escalate the situation. Secretary Kerry saying he knows it's not going to happen right away.

He understands that Foreign Minister Lavrov has to go back to Moscow and consult with President Putin. They are hoping in the coming days or week or so they can get some kind of meeting going where the Russians and Ukrainians are talking about how to pull back -- Anderson.

COOPER: All right, Elise Labott, thanks for that update very much. Appreciate it. We are coming to you from one of the main roads going to Independent Square. People coming here to pay respects to those who died.

Often people bring flowers. They come to bring flowers bring prayers, look at pictures of those that have died. Ukraine's interim prime minister is speaking out against Crimea's plan to let residents there vote on joining the Russian federation claiming any referendum is illegal. Listen.

(BEGIN VIDEO CLIP)

ARSENIV YATSENIUK, INTERIM UKRAINIAN PRIME MINISTER: This is illegitimate decision. This so called referendum has no legal grounds at all. That's the reason why we urge Russian government not to support those who claim separatism in Ukraine. Crimea was, is, and will be an integral part of Ukraine.

(END VIDEO CLIP)

COOPER: I've been talking to people here in the square throughout the morning, throughout the day. Everybody says that they cannot imagine a Ukraine without Crimea. The idea of Crimea joining part of Russia is something certainly people here will simply do not accept.

CNN's Anna Coren is live outside the parliament building in Crimea. How are people there reacting?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Well, Anderson, it's a completely different feel here in Simferopol, which, of course, is the capital of the region which is Crimea. It's an autonomous region that, of course, part of Ukraine. However, just a few hours ago, the new parliament, the new government here decided to vote in favor of holding a referendum in about ten days' time.

They brought that forward meant to happen at the end of the month. They brought it forward to the 16th of March. In that referendum, the citizens of Crimea will decide whether or not they want to stay with Ukraine or break away and become part of the Russian federation. That is the question being posed to citizens.

You know, we have to keep in perspective, Anderson, that 60 percent of people here in Crimea are Russian speaking, very close ties between this region and Russia. Obviously it used to be part of the former Soviet Union until 1954 when it was handed to Ukraine.

And then when the Soviet Union broke up in 1991, it stayed with Ukraine. But there are many people who feel they have very close ties to Russia. They feel that they would be better off with Ukraine. That they would be much better off economically with Russia.

So that is certainly the sentiment that we are getting here today. They're welcoming the Russian troops who have come in. Earlier today we were at a military base where Russian troops were very, very visible. They're there occupying the bases. The people here at least many of the ones we have spoken to welcome their presence.

COOPER: As you pointed out, there are ethnic groups in Crimea. There are Muslims who have been coming back in recent years after basically being forced out by Stalin years ago. Today Ukraine is accusing Russia of sinking a ship in the harbor. What's the latest on that?

COREN: Yes, we don't have a lot of information. But the Ukrainian Defense Ministry is saying that an old warship as you say was taken down and seven warships were blocked. That's the information we're getting. It happened in a Crimean harbor. We're working to try and ascertain more details. Certainly there are attentions not just here in Crimea where the base we were at earlier today.

There are 700 Russian troops that arrived Friday. This is happening all over Crimea. Then you have the tension in southern Ukraine and also Eastern Ukraine where other parts of the country are thinking of holding their own referendum to break away from Ukraine. It really is starting. There's a momentum happening. Those who are ethnic Russians, those in support of Vladimir Putin really don't see their future if you like, with Ukraine any longer -- Anderson.

COOPER: I appreciate the update. Anna in Crimea. Be careful there. Russia will not consider the idea of Crimea joining the Russian federation until after the referendum, which is Ana reported is as March 16th. This the roller coaster ride on Wall Street continues as investors put fears about Ukraine behind them.

Our chief business correspondent, Christine Romans joins us now from New York. I understand a new high right now for the S&P?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: That's right, Anderson. You know, it's almost five years old and keeps moving here. With all that's happening where you are. Investors are saying they don't believe that Russian President Vladimir Putin would retaliate against U.S. sanctions. They don't believe the damage that's also happened because of intervention in Ukraine is something Putin would continue to threaten his own economy by moving forward more in Ukraine.

That's at least what the markets are betting on right here. They're putting all of this behind them. Look at that bull run. The S&P 500 up almost 180 percent over the past five years. Making highs again right now. Look, we are always one headline away from a wild move in the market. I want to be clear. There's no way to know what will happen next in this crisis. It's still an important factor. One sub text story is that a lot of people around the world say the more complicated or the longer this crisis drags out, it makes the U.S. The best place to invest for now. Better than some other parts and assets in the world. That's actually playing into the favor of the stock market as well.

Two story lines there. One that maybe it's not going to get worse. Number two, the U.S. is the best place to invest as long as this crisis drags pit.

COOPER: Interesting idea, Christine Romans. Appreciate that. The developments today on the ground could not have made the situation more complex. The idea of Crimea voting on a referendum about joining the Russian federation makes the diplomatic picture and military picture on the ground complex. We'll talk to others about that coming up.

Still to come, in Washington, lawmakers debating the response to the crisis in Ukraine. Not just sanctions against individuals but the sanctions on the country. We'll bring you details on what could happen coming up.

(COMMERCIAL BREAK)

COOPER: Welcome back to our continuing coverage of the crisis here in Ukraine. We joining you live from Kiev. The U.S. and its global allies searching this day for some diplomatic answers. The diplomatic scene has gotten more complex today. Crimean lawmakers have call aid vote of whether to join Russia as a referendum.

I'm joined by Jill to discuss it. A long time follower of Russian politics, since the last president, served as the bureau chief in Moscow. She's also at the School of Harvard University. You wrote the ousted President Yanukovych was really pulling the strings, not Putin. What do you make of the situation now? The diplomatic situation has gotten more complex?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: It has. It's driven by the people in Ukraine, leaders in place that have now said in ten days they're going to hold referendum. In Crimea I'm sorry. They also said that they are taking a principal decision. They want to be a part of Russia. They're saying in ten days Crimean people vote on this, go with Russia. They are predicting 70 percent will stay with Ukraine or go with Russia. They're predicting 70 percent will vote for going to Russia.

COOPER: That makes -- there are so many complexities to the situation caused all of a sudden you have the Ukrainian military bases in Crimea. If people vote saying they want to be part of Russia, they can argue the military bases are now on foreign soil and should not be allowed to stay.

DOUGHERTY: Absolutely. It raises issues for the Ukrainian government now. Do they try to use force? Does Russia send in more reinforcements? It's highly dangerous and unpredictable what can happen. COOPER: We talk about the Ukrainian government. This is a new government. Interim president, new prime minister. This is a shaky government at best.

DOUGHERTY: Absolutely. Politically, economically and every way. This is a challenge in a physical sense. They could be facing a part of their country being torn away and the potential for actual fighting on the ground. If you look at the wires, you talk with people as our teams are down there, it's highly emotional. When that vote takes place, who knows. Even the vote what could happen.

COOPER: The Ukrainian military say fraction of the size of Russia's military. Russia's military deploys on in fronts. If Russia moved to Eastern Ukraine or other areas, if Crimea chooses to break away, there's nobody here -- certainly in Kiev in the government or on the streets that are willing to entertain the idea of Crimea being part of Russia.

DOUGHERTY: Absolutely. On every level, legally, militarily, they will not accept it. The problem is, if Russia -- let's say that Crimea votes for it. They send their requests to Vladimir Putin, please let us become part of Russia. He says yes. Then Russia at that point considers it part of Russia. Therefore Russia in its own eyes would have the right to do what it wants militarily or any way.

COOPER: There could be some sort of negotiation in terms of even if this referendum takes place, if they become part of Russia. Russia for diplomatic reasons could say no. There could be a federalist system, greater sense of autonomy or greater self-rule by Crimea if they remain part of Ukraine.

DOUGHERTY: Yes, it could. We don't know exactly what Russia thinks about their coming into the folds of Russia. Do they really want them? Some say they don't. It's complex in terms of the next step. The E.U., this morning at the news conference, they said it would be illegal for Crimea to hold that referendum. When you get to issues of national sovereignty, territorial integrity, you have to have a vote by the entire country not just Crimea.

COOPER: Yes. Jill, appreciate that. We'll talk to Jill throughout the day. Still to come, a lot more in this hour. A U.S. heading towards the Black Sea. You're going to here officials claim that Destroyer heading towards the black sea. Some say this has nothing to do with what is happening in Ukraine. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Welcome back. Reporting live today from Kiev, Ukraine. New pictures as Ukraine accuses Russia of purposely sinking an old war trip trapping seven Ukrainian ships. You see how easy it might be to block that entry way. The crisis in Ukraine is the focus on Capitol Hill this morning in Washington where the House Foreign Affairs Committee is holding a hearing on the U.S. approach to the situation.

The committee chairman is telling CNN it will vote on a resolution outlining sanctions on Russia once the hearing ends. Our chief congressional correspondent, Dana Bash joins me now. So Dana, both the House and Senate taking action on Russia. What are you hearing?

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: That's right. When it comes to what to do now about Russia, there's actually a striking similarity between what Republicans and Democrats want to do. One is sanctions. Certainly they're happy about the White House and what they did today. There's other measures they want to take forward. The partisan divide is over how and why we got here.

Republicans are pounding the president saying it's his choices, his -- in the words of many Republican, lack of leadership that got us here. Lindsey Graham, senator from South Carolina has been among the strongest. He even in a tweet earlier this week linked it to Benghazi. He said in many ways it started with Benghazi when the consulate was overrun and our first ambassador was killed.

I had the chance to speak to the senator and ask how on earth there is a link between Benghazi and what's going on in the Ukraine? He said because the president there and other places said he was going to do something and didn't follow through. Listen to what happened.

(BEGIN VIDEOTAPE)

SENATOR LINDSEY GRAHAM (R), SOUTH CAROLINA: -- when you draw a red line and you tell Assad, when you use chemical weapons on your own people, that will be a red line, and you flinch. When you tell the world, we're going to find the people that killed our four Americans in Libya including the ambassador and you do nothing about it, whether you agree with this policy in Syria or Egypt, whether you agree with his policies, when he tells people there are going to be consequences and there are none, it sets in motion exactly what you see.

BASH: But it just seems like a stretch to talk about the U.S., a U.S. ambassador and three other Americans killed, to take that to Vladimir Putin.

GRAHAM: I didn't say that Putin basically ignored Obama because of Benghazi alone.

BASH: I printed out a series of tweets and it was sort of rapid fire mean tweeting at the president. Really personal.

GRAHAM: It is personal.

BASH: Calling him weak and indecisive, no fewer than three times.

GRAHAM: I think he is.

BASH: But by saying these things, aren't you making him weaker in the eyes of Putin by someone like you with your stature calling him weak and indecisive.

GRAHAM: During the Iraq war, did Senator Obama criticize Bush's policies? Did people go on the floor and say that Bush lied to us about weapons of mass destruction. Didn't Harry Reid go on the floor and say that the Iraq was lost? The point I'm trying to make is that there's been too many times in the last six months where the president has told people, if you don't do what I say, there will be consequences and nothing's happened.

(END VIDEOTAPE)

BASH: Now to give you a little political context about Lindsey Graham. He's somebody people might recognize as a Republican who supported the president in domestic issues even in international issues. Not now. He says it's because the president has lost my confidence. He also is in a very intense primary fight back home in South Carolina. He is being challenged from the right by conservatives.

I asked if that has anything to do with his Benghazi comments since Benghazi is red meat for conservatives. He insisted no. He says he intends to win his primary and even after that still plans to focus on the issue of Benghazi -- Anderson.

COOPER: Yes, I saw the interview last night. You certainly challenged him on how much is politics because of the primary challenge. Dana, I want to ask you about the executive order signed by President Obama that's is going to impose sanctions on Russians, individual Russians who the United States believes are responsible for upheaval on the ground in Crimea. Any word yet on the response from Congress on that?

BASH: We haven't seen a formal response. This is certainly something that Democrats and Republicans have wanted the White House to do. There had been trepidation among some for the U.S. to go in alone and not do this in conjunction with allies. Again the idea of being tough, swift with Vladimir Putin is really something that is bipartisan.

I can tell you I'm looking at a tweet from Samantha Power, who is the U.S. Ambassador to the U.N. She says there are visa restrictions on a number of individuals responsible or complicit in threatening the sovereignty of Ukraine. That is another thing that members of Congress and both parties have been really pushing the White House, the Obama administration to do quickly to send a very strong signal to Vladimir Putin.

COOPER: As you said, Dana, more being debated on Capitol Hill right now about what to do in terms of sanctions against individuals or against Russia. We'll have more reporting on that throughout the day. Dana, appreciate it.

We are going to take a quick break. We'll have more from Ukraine, from Crimea, and all diplomatic fronts around the world. We'll be right back.

(COMMERCIAL BREAK)